Since 1994
By the Termco teamLicensed life insurance agents since 1994Updated
Illinois at a glance
- Insurance regulator: Illinois Department of Insurance
- Free look on new individual life policies: 10 days
- Free look when replacing a policy: 20 days
- State estate tax: yes (exemption $4,000,000) · Inheritance tax: no
Who regulates life insurance in Illinois
Life insurance is regulated state by state. In Illinois, that's the Illinois Department of Insurance. Before you buy, you can use the regulator's website to confirm that both the insurer and the agent are licensed in Illinois, read consumer guides, and file a complaint if something goes wrong. You can also look up an agent's licenses in every state through the NAIC's licensee lookup.
Your free-look period in Illinois
In Illinois, you have at least 10 days after an individual life insurance policy is delivered to review it and return it for a full refund of premium (215 ILCS 5/224, as summarized by the NAIC).
If your new policy replaces an existing life insurance policy or annuity, Illinois gives you a longer review window: 20 days (215 ILCS 5/224, as summarized by the NAIC).
Either way, don't cancel an existing policy until the new one is approved, delivered and in force, and the free look has passed.
Taxes
Illinois has its own estate tax. The Tax Foundation lists the Illinois exemption at $4,000,000 as of October 1, 2026. Life insurance you own on your own life generally counts toward your estate, so a large policy can push an estate over that threshold. A common planning tool is to have the policy owned by an irrevocable life insurance trust (ILIT); an estate-planning attorney can tell you whether it makes sense for you.
If an insurer runs into trouble
Illinois, like every state, has a life and health insurance guaranty association that protects policyholders, up to limits set by Illinois law, if a licensed insurer fails. Limits differ from state to state; you can find Illinois's association and its coverage limits through NOLHGA. Insurer failures are rare, and Termco only shows insurers rated A- or better by A.M. Best, but it's good to know the safety net exists.
Does living in Illinois change the price?
Less than you might think. Age, health, nicotine, coverage amount, term length and the insurer you choose drive the price; your state mainly affects which products and riders are available. See how term life is priced.
Get term life estimates in Illinois
See estimated monthly prices in about a minute. A licensed Termco agent confirms your exact rate before you apply. No obligation.
Frequently asked questions
Who regulates life insurance in Illinois?
The Illinois Department of Insurance. It licenses insurers and agents and handles consumer complaints. You can verify any agent's license there before you buy.
How long is the free-look period for life insurance in Illinois?
In Illinois, you have at least 10 days after an individual life insurance policy is delivered to review it and return it for a full refund of premium (215 ILCS 5/224, as summarized by the NAIC). If your new policy replaces an existing life insurance policy or annuity, Illinois gives you a longer review window: 20 days (215 ILCS 5/224, as summarized by the NAIC).
Does Illinois have an estate or inheritance tax?
Illinois has an estate tax, with an exemption of $4,000,000 as of October 1, 2026, according to the Tax Foundation. It has no inheritance tax.
Can I buy term life insurance in Illinois through Termco?
Yes. Termco offers coverage nationwide. Any policy for a resident of Illinois is sold by a Termco agent licensed in Illinois, and only insurers rated A- or better by A.M. Best appear in our quote tool.
Nearby states
Wisconsin · Iowa · Missouri · Kentucky · Indiana · All states
Sources
- Illinois Department of Insurance
- NAIC – Life Insurance Disclosure Provisions (state law chart, PDF)
- Tax Foundation – Estate and Inheritance Taxes by State, 2026
- NOLHGA – Contact your state's guaranty association
This page is general information, not legal or tax advice. State laws change; the free-look figures above come from the NAIC's summary of state law (state information last reviewed December 2023), and your policy is the final word on its own terms. Checked October 17, 2026.